“September is going to be a choppy month, but we will start trending higher as we get closer to the end of this month and the quarter,” Pado told CNBC.

Pado said although the economy is on a slow-growth path, corporations are well-positioned to make money.

“All they need is just a little uptick in the economy in the fourth quarter, and I think they are going to do very well,” he said.

The markets will also break out of this sideways motion in 2012, he added.

“We could be up by 1,500 on the S&P by 2012,” Pado said. “A lot of the historical standards will start showing that this is a market that should be bought and when it starts to move, investors will come back.”

Morgan: 'Contrarian'

In the meantime, Morgan said the bearishness among investors is a “great contrarian symbol” to be bullish on stocks.

“We're going to be in a trading range for stocks and it’s going to be choppy, but long-term, I’m bullish,” he said.